2025 tax season is in full swing, and millions of Americans have already received their refunds from IRS.
According to the latest IRS update, over $145 billion in tax refunds has been issued to taxpayers in 2025, surpassing last year’s numbers at this point in the season. With the average refund rising to $3,324, many are wondering: Will you get more money back this year?
IRS Tax Refund Update: Key Numbers for 2025
As of March 7, 2025, the IRS has:
- Processed 60.7 million tax returns (down 1.8% from last year)
- Received 61.4 million total returns (a 2.1% decrease from 2024)
- Issued 43.6 million refunds (a 1.5% increase from 2024)
- Distributed $145 billion in total refunds (compared to $133.8 billion at this time last year)
- Increased the average refund to $3,324 (up 5.7% from 2024’s $3,145)
Despite a small dip in processed returns, the total amount refunded is significantly higher than last year, suggesting taxpayers may be seeing larger refunds.
Why Are Refunds Bigger This Year?
Several factors could be influencing this year’s higher refund amounts:
- Inflation Adjustments: Tax brackets, standard deductions, and credits have been adjusted for inflation, meaning more money is being returned to taxpayers.
- Changes in Tax Credits: Expanded eligibility for certain deductions and credits, such as the Earned Income Tax Credit (EITC) and Child Tax Credit, could be boosting refunds.
- Tax Withholding Adjustments: Many taxpayers had more withheld from their paychecks, leading to larger refunds.
If you haven’t filed yet, consider checking if you qualify for any new deductions or credits to maximize your return.
How to Track Your Tax Refund
Wondering when your refund will arrive? The IRS provides several tools to help:
- “Where’s My Refund?” tool on the IRS website
- IRS2Go mobile app
- Calling the IRS refund hotline at 1-800-829-1954
Most electronic refunds are processed within 21 days, while paper returns can take longer.
Still Need to File? Here’s What You Should Know
The 2025 tax filing deadline is April 15. If you haven’t filed yet, here are some key tips:
- Use E-File for Faster Refunds: Nearly 60 million returns have been filed electronically so far, making it the fastest and most secure option.
- Double-Check Your Information: Small mistakes can delay refunds or trigger audits.
- Consider Professional Help: If your taxes are complex, hiring a tax professional could save you money.
Final Thoughts: Will Your Refund Be Bigger in 2025?
With higher average refunds and more total money issued in 2025 by IRS, many taxpayers are getting bigger refunds this year. However, your individual return will depend on factors like deductions, credits, and withholding.
If you’re still waiting for your refund, check the IRS tracker, and if you haven’t filed yet, consider optimizing your return to get the most money back.
